MIRA INFORM REPORT
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Report Date : |
27.12.2014 |
IDENTIFICATION DETAILS
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Name : |
CNLIGHT Co., Ltd. |
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Registered Office : |
A Zone, Shishan Technology
Industry District Nanhai District, |
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Country : |
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Financials (as on) : |
30.09.2014 |
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Date of Incorporation : |
22.10.1992 |
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Com. Reg. No.: |
440600000023109 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling of Lighting Electric Appliance, Electric
Vacuum Device. |
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No. of Employees : |
1,256 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made on
e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China has
moved from a closed, centrally planned system to a more market-oriented one
that plays a major global role - in 2010 China became the world's largest
exporter. Reforms began with the phasing out of collectivized agriculture, and
expanded to include the gradual liberalization of prices, fiscal
decentralization, increased autonomy for state enterprises, growth of the
private sector, development of stock markets and a modern banking system, and
opening to foreign trade and investment. China has implemented reforms in a
gradualist fashion. In recent years, China has renewed its support for
state-owned enterprises in sectors considered important to "economic
security," explicitly looking to foster globally competitive industries.
After keeping its currency tightly linked to the US dollar for years, in July
2005 China moved to an exchange rate system that references a basket of
currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi
against the US dollar was more than 20%, but the exchange rate remained
virtually pegged to the dollar from the onset of the global financial crisis
until June 2010, when Beijing allowed resumption of a gradual appreciation and
expanded the daily trading band within which the RMB is permitted to fluctuate.
The restructuring of the economy and resulting efficiency gains have
contributed to a more than tenfold increase in GDP since 1978. Measured on a
purchasing power parity (PPP) basis that adjusts for price differences, China
in 2013 stood as the second-largest economy in the world after the US, having
surpassed Japan in 2001. The dollar values of China's agricultural and
industrial output each exceed those of the US; China is second to the US in the
value of services it produces. Still, per capita income is below the world
average. The Chinese government faces numerous economic challenges, including:
(a) reducing its high domestic savings rate and correspondingly low domestic
consumption; (b) facilitating higher-wage job opportunities for the aspiring
middle class, including rural migrants and increasing numbers of college
graduates; (c) reducing corruption and other economic crimes; and (d)
containing environmental damage and social strife related to the economy's
rapid transformation. Economic development has progressed further in coastal
provinces than in the interior, and by 2011 more than 250 million migrant
workers and their dependents had relocated to urban areas to find work. One
consequence of population control policy is that China is now one of the most rapidly
aging countries in the world. Deterioration in the environment - notably air
pollution, soil erosion, and the steady fall of the water table, especially in
the North - is another long-term problem. China continues to lose arable land
because of erosion and economic development. The Chinese government is seeking
to add energy production capacity from sources other than coal and oil,
focusing on nuclear and alternative energy development. Several factors are
converging to slow China's growth, including debt overhang from its
credit-fueled stimulus program, industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow recovery of China's trading
partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated
at the Communist Party's "Third Plenum" meeting in November 2013,
emphasizes continued economic reforms and the need to increase domestic
consumption in order to make the economy less dependent in the future on fixed
investments, exports, and heavy industry. However, China has made only marginal
progress toward these rebalancing goals. The new government of President XI
Jinping has signaled a greater willingness to undertake reforms that focus on
China's long-term economic health, including giving the market a more decisive
role in allocating resources.
|
Source
: CIA |
Company Name and address
CNLIGHT Co., Ltd.
A ZONE, Shishan
Technology Industry District
NANHAI DISTRICT,
FOSHAN, GUANGDONG PROVINCE 528225 PR CHINA
TEL: 86 (0)
757-86695590
FAX: 86 (0)
757-86695225
EXECUTIVE SUMMARY
Date of Registration : OCTOBER 22, 1992
REGISTRATION NO. : 440600000023109
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : CNY 184,270,676
staff : 1,256
BUSINESS CATEGORY : manufacturing & trading
REVENUE : CNY 335,419,000
(Consolidated, Jan. 1, 2014 to Sep. 30, 2014)
EQUITIES : CNY 410,015,000
(Consolidated, As of Sep. 30, 2014)
WEBSITE : www.cnlight.com
E-MAIL : marketing@cnlight.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.22 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a shares limited company of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 440600000023109
on October 22, 1992.
SC’s Organization Code Certificate No.:
28000342-4
SC’s registered capital: CNY 184,270,676
SC’s paid-in capital: CNY 184,270,676
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of September
30, 2014) |
% of Shareholding |
|
Chai Guosheng |
39.66 |
|
Xian
Shuzhong |
2.75 |
|
Wang Yi |
2.32 |
|
Huang
Yunlong |
1.71 |
|
Fu Ruyu |
1.1 |
|
Song Yongze |
1.03 |
|
Li Jin |
0.63 |
|
Huang
Chunfang |
0.49 |
|
Shaanxi
International Trust Co., Ltd.-Longding No.2 Securities Investment Assembled
Funds Trust |
0.45 |
|
China
Construction Bank Co., Ltd.-Morgan Stanley Huaxin multi-factor selection
strategy Securities Investment Fund |
0.32 |
|
Other Shareholders |
49.54 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, General Manager and Director |
Chai Guosheng |
|
Director |
Xian Shuzhong |
|
Wang Yi |
|
|
Chai Hua |
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Independent
Director |
Liu Shengping |
|
Zhu Fang |
|
|
Wu Yunchun |
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Supervisor |
Liu Huogen |
|
Tang Hao |
|
|
Liu Youcai |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002076.
SHAREHOLDER CHART & BACKGROUND
Name % of Shareholding
(As of September 30, 2014)
---------------------------------
Chai Guosheng 39.66
Xian Shuzhong 2.75
Wang Yi 2.32
Huang Yunlong 1.71
Fu Ruyu 1.1
Song Yongze 1.03
Li Jin 0.63
Huang Chunfang 0.49
Shaanxi International Trust Co.,
Ltd.-Longding No.2 Securities
Investment Assembled Funds Trust 0.45
China Construction Bank Co., Ltd.-Morgan
Stanley Huaxin multi-factor
selection strategy Securities Investment
Fund 0.32
Other Shareholders 49.54
MANAGEMENT
Chai Guosheng, Legal Representative, General Manager and
Director
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 61
Ø Qualification:
University
Ø Working experience (s):
At present, working in SC as legal
representative, general manager and director
Director
-----------
Xian Shuzhong
Wang Yi
Chai Hua
Independent
Director
---------------------------
Liu Shengping
Zhu Fang
Wu Yunchun
Supervisor
--------------
Liu Huogen
Tang Hao
Liu Youcai
BUSINESS OPERATION
SC’s registered business scope includes designing, processing, and
manufacturing lighting electric appliance, electric vacuum device, science
equipment, electric light source equipment & accessories, electronic
components, automatic control equipment, II series of disinfection room, supply
room equipment & apparatus, water treatment equipment, and air treatment
equipment; technology developing and manufacturing avionics, unmanned aircraft,
radio data transmission system, intelligent toy and its application;
undertaking water treatment engineering, and air treatment engineering;
installing lighting appliance; trading of electric vehicles & related
accessories, and home appliances & related accessories; importing and
exporting commodities and technology.
SC is mainly
engaged in manufacturing and selling lighting electric appliance, electric
vacuum device, etc.
SC’s products
mainly include:
LED
Indoor Lighting
LED Bulb
Ceramic Heat Sink
PC & Al Heat Sink
Al Heat Sink
LED Tube Light
LED Downlight
LED Recessed Light
LED Spotlight
LED Candle Bulb
LED Panel Light
LED Ceiling Light
LED Corn Light
LED Table Lamp
LED Track Light
Outdoor Lighting
LED Street Light
LED Flood Light
LED High Bay Light
LED Tunnel Light
CFL
U Type
Half Spiral
Single - capped
Outer Bulb
Full Spiral
High Power
CMH
Brand: 
SC sources its materials 90% from domestic market and 10% from the
overseas market. SC sells 60% of its products in domestic market and 40% to overseas market, mainly U.S.A., etc.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Major Clients:
-----------------
General Electric
International Inc.
Havells Sylvania
Costa Rica S.A.
Lights of America,
Inc.
Staff & Office:
--------------------------
SC is known
to have approx. 1,256 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have 5
subsidiaries at present:
Sichuan
Wright Optoelectronics Technology Co., Ltd.
---------------------------------------
Date of Registration: November 25, 2009
Registration No.: 510900000031704
Registered Capital: CNY 50,000,000
Guangzhou
Kailin Lighting Co., Ltd.
---------------------------------
Date of Registration: January 15, 2001
Registration No.: 440103000021462
Registered Capital: CNY 4,000,000
Forshan
Wright E-commerce Co., Ltd.
---------------------------------------
Date of Registration: December 12, 2013
Registration No.: 440682000425035
Registered Capital: CNY 10,000,000
Wright
(Southeast Asia) Co., Ltd.
Suining
Mengshi Glass Technology Co., Ltd.
------------------------------------
Date of Registration: January 10, 2011
Registration No.: 510900000037244
Registered Capital: CNY 15,000,000
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment experience (through current enquiry with SC's
suppliers), our delinquent payment and our debt collection record concerning
SC.
Trade payment experience: SC did not
provide any name of trade/service suppliers and we have no other sources to
conduct the enquiry at present.
Delinquent payment record: None in our
database.
Debt collection record: No overdue amount
owed by SC was placed to us for collection within the last 6 years.
BANKING
Basic Bank:
Industrial
and Commercial Bank of China Foshan Nanhai Sub-branch
AC#:
2013020009024533570
FINANCIALS
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Sep. 30, 2014 |
|
108,168 |
94,496 |
|
|
Notes receivable |
609 |
1,386 |
|
Accounts receivable |
109,953 |
156,182 |
|
Advances to suppliers |
10,815 |
17,927 |
|
Interest receivable |
0 |
0 |
|
Other receivable |
3,135 |
7,148 |
|
Inventory |
130,392 |
110,249 |
|
Other current assets |
7,179 |
4,543 |
|
|
------------------ |
------------------ |
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Current assets |
370,251 |
391,931 |
|
Long-term equity investment |
6,160 |
20,969 |
|
Fixed assets |
135,093 |
143,461 |
|
Construction in progress |
15,748 |
0 |
|
Project materials |
0 |
0 |
|
Fixed asset depreciation |
0 |
0 |
|
Intangible assets |
24,654 |
24,009 |
|
Long-term prepaid expenses |
193 |
85 |
|
Deferred income tax assets |
3,001 |
4,649 |
|
Other non-current assets |
13,133 |
16,807 |
|
|
------------------ |
------------------ |
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Total assets |
568,233 |
601,911 |
|
|
============= |
============= |
|
Short-term loans |
0 |
25,000 |
|
Notes payable |
27,946 |
21,214 |
|
Accounts payable |
87,094 |
90,351 |
|
Advances from clients |
13,221 |
12,429 |
|
Payroll payable |
6,632 |
6,379 |
|
Tax payable |
4,743 |
6,711 |
|
Other payable |
22,917 |
23,045 |
|
Other current liabilities |
3 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
162,556 |
185,129 |
|
Non-current liabilities |
410 |
6,767 |
|
|
------------------ |
------------------ |
|
Total liabilities |
162,966 |
191,896 |
|
Equities |
405,267 |
410,015 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
568,233 |
601,911 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
Jan. 1, 2014 to Sep. 30, 2014 |
|
Revenue |
392,049 |
335,419 |
|
Cost of
sales |
281,647 |
247,406 |
|
Taxes and
surcharges |
2,803 |
2,252 |
|
Sales expense |
44,811 |
40,424 |
|
Management expense |
41,684 |
30,555 |
|
Finance expense |
5,242 |
-331 |
|
Investment income |
3,319 |
-184 |
|
Non-operating income |
4,196 |
2,472 |
|
Non-operating expense |
694 |
1,668 |
|
Profit before tax |
18,974 |
15,223 |
|
Less: profit tax |
3,001 |
2,241 |
|
Profits |
15,973 |
12,982 |
Important Ratios
=============
|
|
As of Dec. 31,
2013 |
As of Sep. 30,
2014 |
|
*Current ratio |
2.28 |
2.12 |
|
*Quick ratio |
1.48 |
1.52 |
|
*Liabilities to assets |
0.29 |
0.32 |
|
*Net profit margin (%) |
4.07 |
3.87 |
|
*Return on total assets (%) |
2.81 |
2.16 |
|
*Inventory / Revenue ×365/270 |
122 days |
89 days |
|
*Accounts receivable / Revenue ×365/270 |
103 days |
126 days |
|
*Revenue / Total assets |
0.69 |
0.56 |
|
*Cost of sales / Revenue |
0.72 |
0.74 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears average.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. Taking into consideration of SC’s general performance, reputation
as well as market conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.64 |
|
|
1 |
Rs.98.98 |
|
Euro |
1 |
Rs.77.74 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
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|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
NB |
New Business |
-- |
|
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.